NYSE:MUSA

Stock Analysis Report

Executive Summary

Murphy USA Inc. engages in the marketing of retail motor fuel products and convenience merchandise.

Snowflake

Fundamentals

Mediocre balance sheet with questionable track record.


Similar Companies

Share Price & News

How has Murphy USA's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

4.5%

MUSA

5.3%

US Specialty Retail

3.4%

US Market


1 Year Return

10.3%

MUSA

1.6%

US Specialty Retail

5.4%

US Market

Return vs Industry: MUSA exceeded the US Specialty Retail industry which returned 1.6% over the past year.

Return vs Market: MUSA exceeded the US Market which returned 5.4% over the past year.


Shareholder returns

MUSAIndustryMarket
7 Day4.5%5.3%3.4%
30 Day1.5%0.7%-1.0%
90 Day2.8%1.9%-0.4%
1 Year10.3%10.3%3.3%1.6%7.7%5.4%
3 Year28.7%28.7%40.6%33.4%46.2%36.8%
5 Year63.5%63.5%57.4%43.6%65.6%47.5%

Price Volatility Vs. Market

How volatile is Murphy USA's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Murphy USA undervalued compared to its fair value and its price relative to the market?

17.85x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: MUSA ($88.97) is trading above our estimate of fair value ($81.48)

Significantly Undervalued: MUSA is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MUSA is poor value based on its PE Ratio (17.8x) compared to the Specialty Retail industry average (15.1x).

PE vs Market: MUSA is poor value based on its PE Ratio (17.8x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: MUSA is poor value based on its PEG Ratio (2.8x)


Price to Book Ratio

PB vs Industry: MUSA is overvalued based on its PB Ratio (3.5x) compared to the US Specialty Retail industry average (1.4x).


Next Steps

Future Growth

How is Murphy USA forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

6.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MUSA's forecast earnings growth (6.4% per year) is above the savings rate (2.7%).

Earnings vs Market: MUSA's earnings (6.4% per year) are forecast to grow slower than the US market (14.3% per year).

High Growth Earnings: MUSA's earnings are forecast to grow, but not significantly.

Revenue vs Market: MUSA's revenue (6.9% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: MUSA's revenue (6.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: MUSA's Return on Equity is forecast to be low in 3 years time (19%).


Next Steps

Past Performance

How has Murphy USA performed over the past 5 years?

4.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: MUSA's earnings have grown by 4% per year over the past 5 years.

Accelerating Growth: MUSA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MUSA had negative earnings growth (-43.5%) over the past year, making it difficult to compare to the Specialty Retail industry average (8.3%).


Return on Equity

High ROE: MUSA's Return on Equity (19.7%) is considered low.


Return on Assets

ROA vs Industry: MUSA has a higher Return on Assets than the Specialty Retail industry average last year.


Return on Capital Employed

ROCE Improving: MUSA's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Murphy USA's financial position?


Financial Position Analysis

Short Term Liabilities: MUSA's short term assets ($656.3M) exceeds its short term liabilities ($578.8M)

Long Term Liabilities: MUSA's short term assets (656.3M) do not cover its long term liabilities (1.2B)


Debt to Equity History and Analysis

Debt Level: MUSA's debt to equity ratio (104.4%) is considered high

Reducing Debt: MUSA's debt to equity ratio has increased from 70.9% to 104.4% over the past 5 years.

Debt Coverage: MUSA's debt is well covered by operating cash flow (41.9%).

Interest Coverage: MUSA's interest payments on its debt are well covered by EBIT (5.1x coverage).


Balance Sheet

Inventory Level: MUSA has a high level of physical assets or inventory.

Debt Coverage by Assets: MUSA's debt is not covered by short term assets (assets are 0.8x debt).


Next Steps

Dividend

What is Murphy USA's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage2.0%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate MUSA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate MUSA's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if MUSA's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MUSA's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MUSA's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Murphy USA's salary, the management and board of directors tenure and is there insider trading?

3.8yrs

Average management tenure


CEO

R. Clyde (55yo)

6.2yrs

Tenure

US$5,938,171

Compensation

Mr. R. Andrew Clyde has been the President and Chief Executive Officer at Murphy USA Inc. since August , 2013. Mr. Clyde is instrumental in the performance review and analysis of Murphy's U.S. retail busin ...


CEO Compensation Analysis

Compensation vs. Market: R.'s total compensation ($USD5.94M) is about average for companies of similar size in the US market ($USD5.10M).

Compensation vs Earnings: R.'s compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.8yrs

Average Tenure

52yo

Average Age

Experienced Management: MUSA's management team is considered experienced (3.8 years average tenure).


Board Age and Tenure

6.2yrs

Average Tenure

65yo

Average Age

Experienced Board: MUSA's board of directors are considered experienced (6.2 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$1,120,78622 May 19
Claiborne Deming
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares13,330
Max PriceUS$84.08

Ownership Breakdown


Management Team

  • Mindy West (49yo)

    Executive VP of Fuels

    • Tenure: 6.2yrs
    • Compensation: US$2.08m
  • Chris Pikul

    Senior Director of Investor Relations & Financial Planning and Analysis

    • Tenure: 3.8yrs
  • John Moore (51yo)

    Senior VP & General Counsel

    • Tenure: 6.2yrs
    • Compensation: US$1.24m
  • R. Clyde (55yo)

    President

    • Tenure: 6.2yrs
    • Compensation: US$5.94m
  • Donald Smith

    VP & Controller

    • Tenure: 0yrs
  • Terry Hatten (52yo)

    Senior VP of Human Resources & Interim Chief Information Officer

    • Tenure: 0.8yrs
    • Compensation: US$926.96k
  • Rob Chumley (54yo)

    Senior Vice President of Merchandising and Marketing

    • Tenure: 3.1yrs
    • Compensation: US$1.15m
  • Gregory Smith

    Secretary

    • Tenure: 3.7yrs
  • Renee Bacon

    Senior Vice President of Sales & Operations

    • Tenure: 0.6yrs

Board Members

  • Fred Holliger (71yo)

    Independent Director

    • Tenure: 6.2yrs
    • Compensation: US$181.22k
  • Claiborne Deming (65yo)

    Independent Director

    • Tenure: 6.2yrs
    • Compensation: US$199.65k
  • Jim Keyes (64yo)

    Independent Director

    • Tenure: 6.2yrs
    • Compensation: US$183.22k
  • Madison Murphy (61yo)

    Non-Executive Chairman

    • Tenure: 6.2yrs
    • Compensation: US$337.22k
  • David Miller (69yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: US$173.22k
  • Diny Landen (58yo)

    Independent Director

    • Tenure: 6.2yrs
    • Compensation: US$209.97k
  • Jeanne Phillips (65yo)

    Independent Director

    • Tenure: 0.9yrs
    • Compensation: US$15.31k
  • R. Clyde (55yo)

    President

    • Tenure: 6.2yrs
    • Compensation: US$5.94m
  • Jack Taylor (67yo)

    Independent Director

    • Tenure: 6.2yrs
    • Compensation: US$194.72k

Company Information

Murphy USA Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Murphy USA Inc.
  • Ticker: MUSA
  • Exchange: NYSE
  • Founded: 2013
  • Industry: Automotive Retail
  • Sector: Retail
  • Market Cap: US$2.844b
  • Shares outstanding: 31.97m
  • Website: https://www.murphyusa.com

Number of Employees


Location

  • Murphy USA Inc.
  • 200 Peach Street
  • El Dorado
  • Arkansas
  • 71730
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MUSANYSE (New York Stock Exchange)YesCommon StockUSUSDAug 2013

Biography

Murphy USA Inc. engages in the marketing of retail motor fuel products and convenience merchandise. The company operates retail stores under the Murphy USA and Murphy Express brand names. As of June 30, 20 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 00:22
End of Day Share Price2019/10/15 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.